Types of Sole Proprietorships and Examples – Do you plan to start your own business? Exactly, this type of individual business is the right form of business to run for micro and small scale businesses. So it is suitable for those of you who want to start a business from scratch with not too big capital as a beginner in entrepreneurship. This business model is also more flexible in terms of product, time and place.
Definition of Individual Business
An individual business is a business entity that is only owned by an individual. This type of individual business has an independent management information system and there is no direct intervention or interference from other parties, for example the government. Types of individual businesses can usually be large-scale and small-scale, for example small-scale business entities (UMK) and large-scale privately owned companies (BUMS).
This type of individual business in running its business still requires technology although it is still simple, capital tends to be small, types of production and not many workers.
Even so, this type of individual business also generates no less income if the business owner can run the business well.
Because the company is managed and supervised by one person, the owner or manager of the business will get all the profits of the company without sharing it with other people. However, besides that, individual companies must also bear all the risks that will arise in their business activities.
With the development of technology and the current digital revolution, there is a variety of information and insights that prospective MSMEs and entrepreneurs must know. Get the information through the MSME 4.0 book below.
This is also because the type of individual business is not regulated in the Criminal Code and other agreements in establishing it. There are many types of sole proprietorships that can be run alone. The following are complete types of individual businesses along with examples of forms of business that you can try.
Types of Sole Proprietorship
1. Agricultural Business
This type of individual business in agriculture is usually located in rural areas and is managed by individuals. This agricultural business has limited capital because usually farmers will cultivate their own agricultural land. Then the results from the farm will be resold to return the capital.
With the development of the era, the agricultural business now has good potential with lucrative profits. There have been many businesses engaged in this field of success by using technology in doing business. For example, creating an online vegetable store, as is done by Happyfresh, Sayurbox, Tanihub, and others who sell agricultural produce through the application.
This type of business can be done individually, although it will cover a wider market due to the use of the internet, but you can set your own target. This agricultural business opportunity is also a shame to miss.
In order for the farming process in Indonesia to run smoothly, it is very important to master the science of management and economics which can be used as an analysis. Find all of them in the book Farming Science below.
To do it is not too difficult and requires special skills. You can even use limited land to produce vegetables. Examples of farming methods that are practical and do not require a lot of land are horticulture, terrariums and hydroponics.
You can also make this farming business a side job for extra income. Other examples of individual business opportunity ideas in agriculture include the following:
- Cultivation of ornamental plants
- Hydroponic growing business
- Buying and selling plant seeds online
- Selling Agricultural Equipment
- Plant Fertilizer Production
- Spice Plant Business
- Selling Organic Vegetables and Fruits
2. Trading Business
Trading business may be the type of individual business that we encounter a lot. This type of business is the activity of buying and selling goods with the aim of making a profit. This includes those who also carry out activities as intermediaries for the buying and selling activities.
This type of business can be done individually if you want to start a business with small capital. This type of individual business can also be carried out by anyone without special skills. There are many types of trading businesses that can be involved, ranging from culinary, beauty, fashion, accessories, furniture, household crafts, to art.
This trading business opportunity is very broad and large, considering the ease of doing business. The following are various types of trading businesses that you can do individually.
a. Retailer
You can start as a retailer with a small capital. You can do this from retailing goods in stalls or grocery stores. This business has also developed into a larger business, such as minimarkets, supermarkets, online businesses, to work in the form of direct selling.
b. Agent Sales
Agent capacity is above retailer. This trading business has more networks and can do it online and offline.
c. Dropshipping or Reseller
This trading business may already be popular in many circles. Dropshipping can be done with small capital, even without capital. The concept of dropshipping actually makes you a marketing agent.
Only armed with a product catalog, you can start this trading business. Learn the various steps that must be taken to get started through the book Step By Step Dropshipping & Reseller Business.
d. Export Import
This type of trading business does require an extensive network, but you don’t need to be related to the production process. You only need to find outside buyers to buy domestic products or vice versa.
To be able to thoroughly understand the export and import processes that are carried out in the practical world, Sinaumed’s can also read one of the references, namely the Import Export book which is below.
e. Distribution of Bulk Goods
You might try this type of trading business if you have large capital with a larger capacity. You can even create a brand or trademark to cover several products.
3. Service Business
This type of trading business is one of the most popular types of business by the people of Indonesia. Although to run this type of business requires special skills, this type of business can be adapted to talent and even pleasure.
That is why this type of business is much looked at because it is more flexible and can adjust according to abilities. It is not imaginary that this type of business can be managed individually. This business can even be done without capital.
If you have a particular talent or ability, try offering your services. Learn more about this through the book Internationalization of SMEs, Small and Micro Enterprises Towards Global Markets.
Opportunities for this type of individual business are very wide open because it can be done from any category. This type of service business has the potential for lucrative profits. Service businesses that are conducted online have greater potential because they are able to penetrate a wider market. Examples of individual business opportunity ideas in the field of service procurement include the following:
- Photo or Photographer Services
- Salon
- Private tutoring
- Vehicle Washing Services
- Tour Guide Services
- Graphic Design Services
- Author
- Editor
- Translator
- Typing Services
- laundry
- Laptop Repair Services
- Website Making Services
There is also a security service business that can be used in all business circles and services. Find understanding and effective and practical security systems through the Security Management book below.
4. Small Industry
Small industry is almost the same as the type of service business, but only the skills are different. This type of business is actually a more complex form, meaning that this business also applies trade and service management as well. in this business also perform services or sales of goods and services to consumers.
This type of small industrial business can be done individually because it can be started from a small capital. In addition to their own capital which is not too large, small industrial businesses also usually have not too many workers, around 5 to 19 people. The workforce taken is usually from the owner’s closest environment such as friends, friends or his own family.
Business opportunities in small industries are very potential in any type of business. Small industrial businesses can also offer services that are sourced from the expertise of the owner. That is why this small industry can also move flexibly. For example, an artist who offers painting services by making painting bags, crafts, recycling used goods, and so on.
Examples of opportunity ideas for the types of small industrial businesses that can be carried out by individuals include the following:
- Clay Crafts
- Woodcraft
- Domestic industry
- Matting
- Toy
- Tempe Tofu Production
- Soy Milk Production
- Rattan
- Wedding Souvenirs
So, those are some types of individual businesses along with business examples that you can try. Before starting a business or business, it would be nice to get to know the type of business we are going to do.
Entrepreneurs are the dream of a nation or a country because with their existence they can grow a country’s economy quickly as discussed in the book Entrepreneurship: Empowerment and Institutional Strengthening in the Medium and Small Industry Sector.
Each type of business has its own risks and strategies. Even the type of business also matches one’s character. This will affect when managing and pursuing the business. Many people still have difficulty recognizing the business potential of what can be done. People tend to only be tempted by market opportunities without understanding their own potential to manage a business.
Determining a business idea is the first step you can take to start a business. Everyone has a different background in their interest in entrepreneurship. Of the many types of businesses that can be done, it often makes people confused about what business to start.
In fact, it’s not uncommon for him to hesitate to start. The way to overcome the confusion is indeed to find a business idea that you really like so that it gives you pleasure while doing it. To find answers to that confusion, you can read this book.
The book entitled 1000 Business Opportunity Ideas will present 1000 business opportunity ideas and 5 types of people’s businesses that are currently Indonesia’s favorite. The author, Wulan Ayodya, provides many explanations of business opportunities that are suitable for individual business types.
The author also provides tips and tricks for starting a business that is simple and easy to understand. This book will certainly help you find business ideas that suit your preferences. You can understand your preferences by reading some of the business idea recommendations from Wulan Ayodya.
Have a book entitled “1000 Ideas for Business Opportunities and the Primadonas of People’s Businesses” so that you have a more complete picture of the types of businesses.
Advantages of Sole Proprietorship
Running this type of individual business has its own advantages for novice business people. Following are the advantages of the sole proprietorship type:
1. Not Subject to Tax
This type of individual business is not taxed like other large companies such as PT or Partnership (Firma). This is because the type of individual business is usually managed with not too much turnover.
2. The Owner Enters the Business Management Section
The owner will be actively involved in a good business that is big business to even the smallest business. The owner has an important role in the management of his business.
3. Low Management Fee
The management management system for the type of individual business is usually not too complex and is mostly handled by the owner himself. So the cost for management is not too big.
4. The legal administration process is not complicated
When running a type of individual business, there is no need to go through complex legal administration processes. Usually administrative matters are only up to the notarial deed and domicile certificate from the sub-district only.
5. Very Fast Formation Process
Usually this type of individual business does not require a lot of things that need to be prepared to do it. Starting from promotion, product provision, and administration, it runs simply.
6. Free to Make a Decision
Because the owner has full control of the company, the sole proprietorship type is more flexible in terms of making decisions. This is because the owner can do it himself without the intervention of other parties.
7. The entire profit amount can become the owner without being shared by other parties
The owner of the sole proprietorship type of business can receive 100% of the profits that the business generates.
Disadvantages of Sole Proprietorship
In addition to the advantages, this type of sole proprietorship also has disadvantages. Even though it looks easy, this type of individual business also has its own risks if there are problems that befall the business.
1. Unlimited Owner Liability
If there is a loss or other problem that befalls the business, then all of that must be accounted for by the owner himself.
2. Limited Capital Sources
A little capital from one person will be a limited source of funding. Usually because of this funding problem, a business will not develop.
3. Easily Distracted Management
Because simple management will also find detailed problems. The number of things that must be handled by the owner makes management less than optimal.
4. Less Guaranteed Business Continuity
A simple administrative process can also be a problem, especially if it does not guarantee the running of the business.
Each type of business has its own advantages and disadvantages. This can be a consideration for those of you who want to start a business. All the risks that exist in this type of individual business should not make you afraid to start a business.
It is necessary to instill the perception that failure is not something that is disgraceful or so scary. You just need to learn a lot and understand yourself to do something.
Like the Self-Business book, Recognize 50 Signs That You Will Be More Successful, this will help you identify whether a business matches the temperament and characteristics that you have.
This book will also give you motivation to enjoy the fun world of business because entrepreneurship can only be done by unique individuals, characters, and very specific mindsets.
If you are sure you have an entrepreneurial spirit, it’s time to act. To run a business, you must understand some basic things to set it up so that your business has a strong foundation.
Especially if you want to try to set up an individual type of business, you need to be mentally prepared and well prepared. The Practical Guidebook for Establishing various Business Entities and Entrepreneurship Innovation and Business Legality will provide you with a complete body of knowledge about the business world. Even for beginners, this book is easy to understand.
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